LS Electric Wins $100 Million Extra-High Voltage Transformer Contract for U.S. Big Tech Data Centers

LS Power Solution Wins Over 100 Billion Won Contract in North America
Supplying for 'Microgrid' Project

LS Electric has secured a large-scale contract to supply extra-high voltage transformers for North American artificial intelligence (AI) data center power infrastructure projects.

On April 6, LS Electric announced that its subsidiary, LS Power Solution, recently signed a contract with a U.S. energy infrastructure company to supply extra-high voltage transformers worth approximately 70.26 million dollars (about 106.6 billion won).

A representative introduces an extra-high voltage transformer at the LS Power Solution Ulsan plant. LS Electric

Under this agreement, LS Power Solution will supply 345kV-class extra-high voltage transformers for microgrids that will provide power to data centers operated by major tech companies in the central United States. The supply period is scheduled from the fourth quarter of 2027 to the first half of 2028.

Previously, seven global big tech companies signed a pledge to source data center electricity directly from self-built power plants instead of external power grids, in response to a request from U.S. President Donald Trump to prevent electricity bills for ordinary citizens from rising due to AI. As a result, microgrids are becoming a key solution for data center energy self-sufficiency.

In September of last year, LS Electric signed a 46 million dollar (about 64.1 billion won) contract to supply distribution solutions for a data center microgrid project. Through its subsidiary, the company has now won a contract to supply extra-high voltage transformers, further demonstrating its competitiveness across the entire data center power supply value chain.

KOC Electric, which was acquired by LS Electric in 2024, changed its name to LS Power Solution last year. It is the only small and medium-sized enterprise in Korea with 154kV technology and facilities, and is recognized as one of the top five companies in Korea supplying extra-high voltage transformers to Korea Electric Power Corporation. Since being acquired by LS Electric, it has expanded its product lineup to include 345kV-class transformers and has been broadening its customer base from domestic to overseas markets.

The global data center power demand is expected to grow from 40 gigawatts in 2025 to 106 gigawatts by 2035. The North American data center power infrastructure market is projected to grow rapidly, from 8.65 billion dollars (13 trillion won) in 2025 to 37.2 billion dollars (about 56 trillion won) in 2035, representing an average annual growth rate of 16%.

An LS Electric official stated, "Although big tech companies are the end customers, we are unable to disclose specific company names due to a non-disclosure agreement (NDA). Having been selected as a supplier of extra-high voltage transformers following our supply of distribution solutions for data center microgrids last year, we have demonstrated technical reliability that covers both transmission and distribution."

An LS Power Solution official added, "Recently, the surge in data center power demand in North America has led to a significant increase in microgrid construction to avoid overburdening the power grid. Through this contract, we will further solidify our brand competitiveness in the rapidly growing data center microgrid market."

LS Power Solution Ulsan Plant Overview. LS Electric

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